VillageMD, a tech-backed value-based care provider, announced its plans to buy chronic care management company Healthy Interactions. 

Healthy Interactions will bring with it both in-person and virtual care models. Its services include small group sessions and a digital engagement platform aimed at supporting patients before and after a session. The virtual platform allows patients to track their goals and tap into educational resources, and to connect with healthcare educators. 

This news comes just months after Walgreens Health announced an additional $5.2 billion investment in VillageMD, bringing its stake in the company to 63%. As part of the recent acquisition, Healthy Interaction's programs will be available from Village Medical and Village Medical at Walgreens by the end of 2022. 

This isn't the first time the VillageMD and Healthy Interactions have teamed up. The pair rolled out a pilot in Texas focused on patients with Type 2 diabetes. 

WHY IT MATTERS

M&As are a popular exit option for digital health companies. In fact, according to CB Insights' State of Digital Health 2021 Report, mergers and acquisitions increased by 44% from 2020 to 2021. The report specifies that in 2021 there were a total of 574 such deals. 

The space has seen a number of large M&A deals continuing into 2022. In January, chatbot company Babylon snapped up Higi, in February Signify Health purchased Caravan for $250 million, Doximity bought Amion for more than $50 million and Nurx merged with Thirty Madison.

THE LARGER TREND

While VillageMD has a long history with Walgreens, the company has said it plans to remain its own entity. Following Walgreen's largest investment into the company last Fall, the Chicago-based company said it plans to conduct an IPO in 2022. 

VillageMD isn't the only company looking to use a hybrid approach to care. One Medical, a membership-based primary care company, went public in early 2020. Since then it has finalized its acquisition of Medicare-focused Iora Health for $1.4 billion and announced a new chronic care offering called Impact by One Medical. 

ON THE RECORD 

"Healthy Interactions is unlike any other patient education program we've seen, and it fits perfectly within our model of close and connected provider-patient relationships that drive the best clinical outcomes," Dr. Clive Fields, chief medical officer and cofounder of VillageMD.

"With Healthy Interactions, our clinical leaders in hundreds of Village Medical practices can provide proven programs to engage patients in comfortable, convenient conversations that have demonstrated sustained behavior change."